Question
Why should financial managers consult with their clients regularly? 1.a. Discuss the advantages and disadvantages of forming a company. b. Discuss the advantages and disadvantages
Why should financial managers consult with their clients regularly?
1.a. Discuss the advantages and disadvantages of forming a company.
b. Discuss the advantages and disadvantages of forming a partnership.
c. Research what are other types of business apart from sole trader, partnerships and companies.
d. List some of the financial objectives of a company.
3. a. What are some of the elements of successful client consultation?
b. List ways to analyse client feedback?
c. How can a business minimise the gap of client service and client expectations?
4. How do you determine which type of insurance to purchase for a company?
5. Identify the major sources of short-term finance that are available in Australia.
6. Describe the characteristics of equity funds such as ordinary and deferred shares, share options and internal funds.
7. Describe the characteristics of debt funds like debentures and unsecured loans, mortgage loans and leases.
8. Describe the characteristics of hybrids of debt and equity funds like preference shares and convertible notes.
Part B - Case Study
1. Tom has recently inherited $600,000.00 from his late mother. He intends to use the money to purchase an empty warehouse in his suburb and use the remaining money to commence an import / export from this premises. He intends to hire at least 25 staff in the first month of commencing operations. He has come to you for advice regarding which business structure would best suit his planned venture and would like to know what initial and ongoing compliance requirements with government regulators he would likely encounter
2. Would your advice to Tom be different if instead of having $600,000, Tom only had $500.00, and instead of operating from a warehouse he intended to do importing / exporting via his laptop in his apartment?
3.A client of yours is experiencing expanding of his business rapidly, he needs to consider if he should purchase a new machine for his business. He has come to you for your advice. The relevant details are provided below,
Machine cost $120,000
Expected operating life 5 years
Expected scrap value at the end of 5 years $20,000
Annual depreciation $20,000
Expected annual cash inflows from operations $40,000
a.What is the payback period? Please show calculation.
b.What is the advantages and disadvantages of using payback period as your investment decision?
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